Jun 6, 2016

Cognitive Biases

I have been and may still be guilty of all these biases in trading and investing.

Human personality and psychology traits plays a huge part in the stock market game. I try to follow some combination of fundamental or technical analysis to help reduce bad decision making based on flawed thinking but it's more art than exact science.

I have tried day trading with mixed results. I have gambled on penny stocks and lost. I bought terrible speculative stocks and held them too long. After more than 10 yrs playing this game, I have settled on a combination of 5-10% short term trading and 90% in long term dividend reinvestment plans. It gives me the SWAN ("sleep well at night") feeling :))


Source: stockcharts.com

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